What happened
Dream Finders Homes (DFH 2.69%) isn't exactly a household name, but it has been one of the best-performing homebuilding stocks in the market recently. And Friday is no exception. As of 11:30 a.m. EDT, Dream Finders was higher by more than 22% and was sitting at a new 52-week high.
So what
Dream Finders reported earnings on Thursday that handily beat the market's expectations on both the top and bottom lines. Simply put, it seems investors are pleasantly surprised at how well the company has navigated a difficult real estate market.
To name just a few of the most important stats, Dream Finders' revenue grew by 19% year over year in the second quarter, fueled by a combination of higher average selling prices and 12% more home closings than the second quarter of 2022.
Looking forward, the number of net new orders increased by 16%, and Dream Finders now has a backlog of 5,288 homes, representing $2.5 billion in sales volume. In fact, recent activity has been so strong that management raised its full-year guidance to 6,500 home closings, up significantly from the previous target of 6,000.
Now what
Conditions for homebuilders have been quite favorable in 2023, as existing home inventories have been extremely low, and supply chain challenges have begun to normalize. That's why homebuilders as a group have performed so well this year.
Dream Finders' recent results show the company's ability to operate profitably in a challenging environment, and even with lofty expectations heading into the quarterly report, Dream Finders still managed to deliver excellent results.
